Current Events in January 2025

Many older people develop chronic kidney disease and are also likely to be on cholesterol-lowering drugs known as statins. There has been speculation that the statins could interfere with kidney function but a new study finds that's not the case.

A University of Iowa research team examined the association between statin use in older adults and changes in two important indicators of kidney function — estimated glomerular filtration rate and urine albumin-to-creatinine (protein-to-waste) ratio.

“The data supports the kidney safety of statins in older adults with or without chronic kidney disease,” the authors write. They suggest that “the decision to use a statin for other indications should not be limited by concerns related to potential kidney harm.”

About the study

The researchers used data collected from a previous research trial that studied use of daily low-dose aspirin in more than 18,000 older adults from the United States and Australia between 2010 and 2017. Among that population, one in five participants had chronic kidney disease. The median age was 76 in participants with chronic kidney disease and 74 in those without.

Examining the data, the Iowa researchers found statin use did not improve kidney function, as had been hypothesized in some previous scientific studies. The drugs also had no ill effects.

Statins are commonly prescribed to older adults to help lower the risk of heart disease.

“While older adults are at greatest risk of cardiovascular events and kidney function decline, they are also the population at highest risk of adverse effects from medications; therefore, evidence demonstrating no negative association between statin use and kidney function provides an equally important message to one of kidney benefit,” the authors wrote.

The study, “Effects of statins on kidney function in older adults,” was published online on Dec. 18 in the Journal of the American Geriatrics Society. The research team was led by clinical professors Michelle Fravel and Michael Ernst, in the College of Pharmacy, 

The recent disastrous wildfires in Southern California are an extreme example of the challenges homeowners face after their home is destroyed or seriously damaged. But a fire, flood or other disaster can strike almost anyone so it's worth facing some unpleasant facts.

Your friends will feel sorry for you, politicians will pledge their support and your family may raise a few dollars through Gofundme and, we hope, you insurance will pay off promptly, assuming you've been able to get insurance.

But whether or not those things happens, the stark truth is that you are still responsible for the mortgage payments, insurance premiums, property taxes and, if applicable, your HOA payment.

Let's review a few salient, if unpleasant, facts:

Mortgage Obligations

• You still owe your mortgage. Even if your house is gone, you’re still required to pay the remaining mortgage balance unless your lender provides relief.
• Relief options:
  • Disaster forbearance: Temporary suspension of mortgage payments. You must contact your lender to request this. Do this sooner rather than later. It may take time and time, as always, is money. Don't waste it. 
  • Repayment plans: Options include lump sum payments, payment deferrals, or mortgage modifications to make your repayments manageable. Lenders will usually grant you a few months of forbearance, meaning you don't have to pay right away but the unpaid amount will get tacked onto the end of your mortgage. 

Property Taxes

• Tax payments still apply: You’re still required to pay property taxes, but natural disasters might reduce what you owe. If your house is now a pile of ashes, its value is drastically reduced. 
• Relief Options:
  • Delayed Payments: Contact your local tax collector to request a delay.
  • Reassessment: If your property value decreases due to damage, you can apply for a reassessment to reduce taxes. This may happen automatically but you should be ready to press the issue and to document how much your property's value has decreased. 

Seek Assistance

• FEMA: While FEMA doesn’t help with mortgage payments, it does provide support for temporary housing, repairs, and other disaster-related needs. 
• Act Quickly: Contact your mortgage servicer or local tax office as soon as possible to explore relief options. You need to start the process quickly, since it may take a long time to complete. 

As we recently reported, apartment rents fell in December for the 17th straight month. But if you’re renting a single-family home, you’re paying more than ever.

A new report from real estate marketplace Zillow shows rents for single-family homes now average about 20% more than apartments. It’s the largest disparity ever recorded by the real estate company, highlighting a significant trend in housing preferences.

According to Zillow, the surge in single-family rental prices is driven by several factors, including persistently high mortgage rates that have dampened buyer demand and slowed home value growth. While multifamily rent growth remains stable due to a robust response from builders, rents for detached single-family homes continue to climb. 

Zillow Chief Economist, Skylar Olsen, attributes this trend to the influx of multifamily units, which are hitting the market at unprecedented rates, while detached homes lag in new construction.

"High and unpredictable mortgage rates, coupled with hefty down payments, are pushing many, especially the large millennial generation, to rent larger spaces instead of buying," Olsen said in a statement.

Demographic shift

Olsen says the demographic shift is evident as millennials, now the largest U.S. generation, are renting longer, with the median age of renters rising to 42 in 2024, up from 33 just three years prior.

The annual growth rate for single-family home rents stands at 4.4%, aligning with pre-pandemic trajectories, while apartment rents grow at a stable 2.4% annually. Since before the pandemic, single-family rents have surged by 41%, compared to a 26% increase in multifamily rents. Among major U.S. metros, Salt Lake City exhibits the largest price premium for single-family rentals at 59%, while Detroit shows the smallest at 9%.

Despite the surge in apartment construction, rents in the multifamily sector remain sticky, with stable growth in the mid-2% range over the past year. To attract tenants, property managers are increasingly offering concessions, such as a month of free rent or parking, now available on 41% of rental listings on Zillow.

On the buying side, inventory levels are gradually recovering, with December seeing just under 1 million homes on the market, the highest for any December since 2019. However, inventory remains 25% below 2018-2019 averages. If the trend of more sellers returning to the market continues, buyers may find more options and less competition.

Car prices and the resulting monthly payments have been rising rapidly in recent years. As of the third quarter of 2024, the average monthly payment in the United States was $737, according to Lending Tree. 

And now, the Consumer Financial Protection Bureau (CFPB) reports that the rate of auto repossessions at the end of 2022 surpassed pre-pandemic levels.

To make matters worse, lenders were increasingly more likely to use third parties, called forwarders, to manage the repossession process. The use of a third party generally increases consumer costs.

“Supply chain shocks and higher interest rates drove up costs to purchase and finance a car,” said CFPB Director Rohit Chopra. “With outstanding auto loans exceeding a trillion dollars, it’s critical that borrowers can avoid the costly consequences of repossession.”

The CFPB analyzed data from nine major auto lenders covering accounts with activity between 2018 and 2022. The data show increasing consumer risk in the $1.64 trillion auto loan market.

Second-biggest purchase

Cars are the second-biggest purchase most consumers make and, not surprisingly, represent one of the largest sources of consumer credit outside of mortgage lending, with more than 100 million active auto finance accounts and $63 billion in new monthly originations as of April 2024.

When vehicles are repossessed, consumers often lose their primary transportation to work, may be required to repay outstanding balances plus repossession fees, and may see additional negative impacts to their credit scores.

Key findings in the report include:

• Vehicles eligible for repossession exceeded pre-pandemic levels: In the month of December 2022, 0.75% of all outstanding vehicle loans were assigned to repossession – a 22.5% increase from December 2019 (0.61%).
• Repossessions completed using forwarders had higher costs charged to borrowers: Lenders’ use of third-party repossession forwarding companies increased from 31% in January 2018 to 66% in December 2022. Average repossession costs charged to consumers were higher when a forwarder was used.
• Consumers still owed thousands after repossession: Consumers can continue to owe money on their vehicle even after it is repossessed and sold by the lender. The average outstanding balance for consumers that had an outstanding balance after repossession in December 2019 was more than $10,000. Following a brief drop, the average outstanding balance sharply increased and was more than $11,000 in December 2022.

In the early days of commercial aviation, passengers generally dressed up for the occasion. In subsequent decades, travel attire became more casual. Spirit Airlines has decided it’s gotten a little too casual.

In the latest update of its Contract of Carriage, Spirit has tightened its dress code. Among the new requirements, passengers must wear shoes – they cannot be barefoot. They must be adequately clothed.

Examples of unacceptable clothing include “see-through clothing; not adequately covered; exposed breasts, buttocks, or other private parts.” Passengers “whose clothing or article of clothing, including body art,” is deemed to be lewd, obscene, or offensive in nature” will be removed from the aircraft, or denied boarding.

Under the revised rules, a passenger with a tattoo can be denied boarding if a Spirit employee decides it violated the spirit of the non-offensive rule.  Some industry analysts suggest Spirit may be tightening its requirements – and spelling them out – to avoid viral videos like the one below:

The airline is also making it clear that there are penalties for running afoul of the dress code. The Contract of Carriage warns that If a passenger is not permitted to board and/or required to leave an aircraft for safety and/or regulatory reasons, there will be no refund.

Ford is recalling 272,817 2021-2023 Bronco Sport and 2022-2023 Maverick vehicles because the 12-volt battery may experience degradation and suddenly fail.

Battery failure can result in a loss of electrical accessories, including the hazard lights, or cause a loss of drive power, increasing the risk of a crash.

What to do

Dealers will inspect and if necessary, replace the 12-volt battery, free of charge. Owner notification letters are expected to be mailed by February 3, 2025. Owners may contact Ford customer service at 1-866-436-7332. 

Ford's number for this recall is 25S02. Vehicles in this recall were previously repaired under 24V-267 and will need to have the new remedy completed.

Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153) or go to nhtsa.gov.

To determine if your vehicle is included in this recall, go to the NHTSA recall website and enter the license plate number or 17-digit VIN.

Cats and birds aren't exactly similar but they're both proving to be susceptible to avian influenza A (H5N1) -- bird flu in other words. Since the bird flu outbreak began in March 2024, dozens of cats are known to have contracted the virus. 

It's not just your neighbor's tabby that's at risk. Barn and feral cats, indoor cats and big cats like mountain lions and tigers are all susceptible, according to the American Veterinary Medical Association (AVMA). 

Cats are not necessarily more likely to catch the virus but they are more likely to become seriously ill, the AVMA said. 

The biggest risk factor for indoor cats appears to be raw diets, those that include unpasteurized milk and raw or undercooked meat -- including commercially available raw pet food. Some pet food makers have conducted product recalls and federal officials are imposing new pet food safety rules.

Bird flu “is an emerging contaminant in animal food,” Dr. Steve Grube, a chief medical officer at the U.S. Food and Drug Administration, said at a recent briefing, according to The New York Times. 

California and Oregon have reported bird flu cases in cats fed raw milk or pet food. 

How the virus is getting into pet food isn't clear but an FDA spokesman said last week that some samples appeared to be closely related genetically to samples from turkey farms in Minnesota.

Cats can also be infected by being exposed to infected wild birds or poultry and to people who work on farms where they might come in contact with infected birds or other animals.

The good news about bird flu in cats is that they appear to be dead-end hosts for the disease, meaning that they don't pass it on to humans or other animals. 

What to do

How can you prevent your cat from catching bird flu? Here's what the AVMA recommends:

• Refrain from feeding cats any dairy products or colostrum that have not first been pasteurized or thoroughly cooked to kill the virus.
• Thoroughly cook meat before feeding, and avoid feeding raw meat-based treats or diets.
• Keep cats indoors to prevent exposure to birds and other wildlife.
• Avoid contact with sick or dead birds and other wildlife yourself.
• Keep cats away from livestock, poultry, and their environments, especially in areas with known H5N1 outbreaks.
• Take steps to prevent contact between captive big cats and wild birds (e.g., covering enclosures with netting and removing bird attractants nearby) in areas where H5N1 is circulating.
• Thoroughly wash your hands after handling your cat and after any encounters with poultry, livestock, or wild birds and other animals.
• Change your clothes and shoes, and thoroughly wash any exposed skin, after interacting with sick or dead animals that may harbor the H5N1 virus, and before interacting with your cat.
• Immediately contact your veterinarian if you notice signs of H5N1 or think your cat might have been exposed to the virus.

What are the symptoms

Illness may start with loss of appetite, lethargy, and fever, then quickly progress, with cats exhibiting:

• Neurologic signs (e.g., ataxia, circling, tremors, seizures, or blindness)
• Severe depression
• Copious nasal discharge
• Other respiratory signs, including tachypnea, dyspnea, and possibly sneezing or coughing

If your cat has neurological symptoms, the vet should consider rabies as a possible diagnosis.

What about dogs?

Dogs appear to be less susceptible to the virus than cats or birds and generally have milder symptoms but contaminated food is risky for canines too, veterianarians warn.  

What's being done?

The FDA last week announced that pet food manufacturers were being required to "reanalyze their food safety plans to include Highly Pathogenic Avian Influenza virus (specifically H5N1) as a known or reasonably foreseeable hazard."

The FDA is tracking cases of H5N1 in domestic and wild cats in California, Colorado, Oregon and Washington State that are associated with eating contaminated food products.

"As we learn more about the transmission of H5N1 in animal food, there are several practices that the FDA is encouraging pet food manufacturers and others in the supply chain to use to significantly minimize or prevent H5N1 transmission through animal food," the agency said in an advisory.

"These practices include seeking ingredients from flocks or herds that are healthy, and taking processing steps, such as heat treatment, that are capable of inactivating viruses."

After rising for several weeks, mortgage rates have dipped slightly this week. Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.96% this week, down from 7.09%.

It’s finally a bit of good news for homebuyers ahead of the start of the spring housing market.

“After crossing the 7%-mark last week, the 30-year fixed-rate mortgage saw its first decline in six weeks,” Sam Khater, Freddie Mac’s chief economist, said in a statement. 

“While affordability challenges remain, this is welcome news for potential homebuyers, as reflected in a corresponding uptick in purchase applications.”

According to the Mortgage Bankers Association, interest in taking out a mortgage rose last week despite elevated interest rates. MBA reports the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 7.02% percent from 7.09% percent, with points decreasing to 0.62 from 0.65 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

Mortgage rates are keyed to the yield on the 10-year Treasury bond, which declined slightly this week. Further declines could lower mortgage rates heading into spring.

The U.S. Consumer Product Safety Commission (CPSC) is announcing that Fitbit LLC, of San Francisco, California, has agreed to pay a $12.25 million civil penalty.

The settlement, which has been provisionally accepted by CPSC, resolves CPSC’s charges that Fitbit knowingly failed to immediately report to CPSC, as required by law, that its Ionic smartwatches contained a defect that could create a substantial product hazard and created an unreasonable risk of serious injury or death to consumers.

During 2018 and 2019 and continuing into 2020, Fitbit received numerous reports of the Ionic smartwatches overheating while being worn by consumers, causing some consumers to sustain burns including second-degree and third-degree burns on their arms or wrists. 

Issued a firmware update

In early 2020, Fitbit initiated a firmware update to lessen the potential for battery overheating; however, Fitbit continued to receive reports of consumers suffering burns due to the product overheating.   

Despite possessing information that reasonably supported the conclusion that the smartwatches contained a defect that could create a substantial product hazard or created an unreasonable risk of serious injury, Fitbit did not immediately report the problem to the commission as required. 

The commission and Fitbit jointly announced a recall of the Ionic smartwatches on March 2, 2022. The recall stated that the firm had received at least 115 reports in the United States of the battery in the smartwatch overheating, with 78 reports of burn injuries in the United States including two reports of third-degree burns and four reports of second-degree burns.

In addition to the $12.25 million civil penalty, the settlement agreement requires Fitbit to maintain internal controls and procedures designed to ensure compliance with the Consumer Product Safety Act (CPSA), including enhancements made to its compliance program. 

Fitbit has also agreed to submit an annual report regarding its compliance program, internal controls, and internal audit of the effectiveness of compliance policies, procedures, systems and training.

About Fitbit

Acquired by Google in 2021 for about $2 billion, Fitbit is a well-known brand of wearable technology devices that track health and fitness data.

What they are:

• Activity trackers and smartwatches: Most Fitbits are wrist-worn devices that look like watches or bands.

• Health and fitness focus: They use sensors to track various metrics like steps taken, distance traveled, calories burned, heart rate, sleep patterns, and more.

• Data syncing: Fitbits connect to smartphones or computers via Bluetooth to sync data to the Fitbit app, where users can view detailed information and track progress over time.

• Variety of models: Fitbit offers a range of devices with different features, styles, and price points to cater to various needs and preferences.

A number of consumer products produced in other countries would likely cost more if President Trump imposed tariffs on the countries where they are produced. That could include some popular items sold by consumer products giant Procter & Gamble.

 P&G’s chief financial officer Andre Schulten held out potential price hikes during a conference call with reporters when commenting on the company’s latest quarterly earnings release.

"Whatever the administration decides to do, we will be able to deal with," Schulten told the reporters.

But Schulten said raising prices would be a last resort. It might be possible, he said, to cut costs, reducing any price increase. And if P&G does raise prices, Schulten said it would be done on an incremental basis.

Some of P&G’s products

Here are just a few of the consumer products produced by P&G:

• Tide detergent

• Gillette razors

• Head & Shoulders shampoo

• Dawn dish soap

• Pampers disposable diapers

• Crest toothpaste

• Charmin toilet paper

Some of these products are produced overseas and imported into the U.S. However, P&G has invested heavily in U.S. manufacturing since 2019. The company also reportedly has the flexibility to alter some product ingredients should tariffs drive up production costs.

Meanwhile, it isn’t clear whether tariffs will be increased or by how much. Trump has hinted that he might impose a 10% on Chinese imports within a few weeks. He has also threatened to slap 25% tariffs on Canada and Mexico, in an effort to persuade companies to return manufacturing to the U.S.

Fires are still burning in Southern California, threatening and destroying homes in their paths. The latest outbreak has forced evacuations of thousands of people about 45 miles northwest of Los Angeles.

Fannie Mae, meanwhile, has announced a comprehensive set of mortgage assistance and disaster relief options for affected homeowners and renters. The initiative is aimed at providing support to those grappling with the aftermath of the natural disaster.

Cyndi Danko, senior vice president and chief credit officer for Single-Family at Fannie Mae, said Fannie Mae is closely monitoring the situation and remains committed to assisting people affected by the fires. She urged residents to reach out to their mortgage servicers promptly for help.

Fannie Mae has outlined several relief measures under its guidelines for single-family mortgages affected by disasters. Homeowners can request mortgage assistance by contacting their mortgage servicer, as listed on their mortgage statement. 

12-month forbearance plan

Affected homeowners may be eligible to reduce or suspend their mortgage payments for up to 12 months through a forbearance plan, during which late fees and foreclosure proceedings are halted.

In cases where direct contact with homeowners is not possible, mortgage servicers are authorized to offer a 90-day forbearance plan if they believe the property has been impacted by the disaster. In the period after forbearance, homeowners have options such as Disaster Payment Deferral and Fannie Mae Flex Modification to address any delinquencies without requiring a lump sum payment.

Fannie Mae also provides disaster recovery counseling services, accessible by calling 855-HERE2HELP (855-437-3243) or visiting their website. These services are free and delivered by HUD-approved housing counselors, offering personalized recovery plans, assistance with financial relief applications, and ongoing guidance for up to 18 months. Support is available in multiple languages to cater to diverse communities.

New York Attorney General Letitia James has announced a massive $1.065 billion judgment against Yellowstone Capital and its network of 25 lending companies she accused of being predatory. 

The settlement could deliver over $534 million in debt relief and at least $16 million in restitution to small businesses across New York and the U.S. that were targeted with illegal high-interest loans.

James’ suit against Yellowstone claimed the company disguised high-interest loans as merchant cash advances. These advances were purportedly structured as purchases of future revenues, but in reality, James said they imposed fixed daily repayments disconnected from the businesses' actual earnings. The suit charged the loans resulted in effective interest rates soaring up to 820% annually, far exceeding legal limits.

"Targeting small businesses with predatory loans and outrageous interest rates threatens the livelihoods of hardworking business owners and their employees," James said in a statement. 

Substantial financial relief

She said the settlement not only provides substantial financial relief but also marks a significant step in protecting small businesses from exploitative financial practices.

Among the affected businesses were City Bakery in Manhattan, which was forced to close due to the crippling debt cycle. The bakery, a staple in Union Square for nearly 30 years, succumbed to daily repayments exceeding $2,000, which it could not sustain.

The settlement requires Yellowstone to cease all collection efforts, vacate court judgments, and terminate liens on small businesses' properties. Additionally, the companies and their officers are permanently banned from the merchant cash advance industry. If they fail to adhere to the settlement terms, the immediate $16.1 million payment will increase to $30 million.